NYSE$GFI

Gold Fields Ltd-ADR · Q3 2023 earnings

Q3 2023 earnings · · Before market open · Investor relations

Briefing

Gold Fields faced production and cost challenges in Q3 2023 due to operational pressures and inflationary impacts.

Gold Fields reported lower production and higher costs in Q3 2023. Gold production declined to 542,000 ounces, while AISC rose significantly to $1,381/oz and AIC to $1,622/oz. Net debt increased due to dividend payments and pre-production capital spending. The company reaffirmed full-year guidance despite the quarter’s challenges.

  • Gold production declined to 542,000 ounces, down 6% QoQ.
  • AISC rose to $1,381/oz due to inflation and lower gold sales.
  • Net debt increased to $1.141 billion with a net debt/EBITDA ratio of 0.48x.
  • Salares Norte commissioning reached 97% progress, with first gold expected in Q4.

Headline financials

Total Revenue

$1.04B

No prior period
EPS (adj)

$0.24

No prior period
Gold Eq. Production

542.0K

No prior period
Gold Price Realised

$1.92K

No prior period
All-in Sustaining Cost

$1.38K

No prior period
All-in Cost

$1.62K

No prior period
Net Debt

$1.14B

No prior period
Net Debt to EBITDA

0.48

No prior period
Net Income

$80.2M

No prior period

Revenue & EPS history

Gold Fields · Revenue · Quarterly

$1.04B

Q3 2023
Beat estimate in 6 of 9 quarters(67%)
ActualEstimate

Forward guidance

Gold Fields maintained its FY2023 production and cost guidance despite Q3 setbacks, with expectations of improved performance in Q4 driven by Salares Norte’s first production.

Tailwinds

  • FY2023 production guidance of 2.25–2.30Moz reaffirmed
  • AIC forecast range of $1,480–$1,520/oz maintained
  • Salares Norte construction reached 97%, first gold expected in Q4
  • Ball and SAG mills commissioned at Salares Norte
  • Windfall project progressing with $25M invested in Q3

Headwinds

  • Q3 production decreased due to lower grades and yields
  • AISC and AIC rose significantly due to inflation and lower sales
  • Net debt increased by $113M from Q2 2023
  • Operational challenges persisted at Tarkwa and South Deep
  • Skills shortages remain a constraint in key regions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.5%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+7.5%

Avg return

30 days after

46%

17 / 37 earnings

Positive

+16.4%

Q2 2015

Best reaction

-11.7%

Q4 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2023-4.4%-8.2%+11.8%
Q3 2023+0.3%+5.5%+24.3%
Q2 2023-10.0%-7.9%-3.4%
Q1 2023-1.1%-0.9%-3.1%
Q4 2022+1.7%+6.7%+18.8%
Q2 2022-2.6%-2.3%-6.4%
Q4 2021+3.7%-5.5%-13.6%
Q3 2021+0.1%+4.5%-6.9%
Q2 2021+1.9%+3.6%+10.8%
Q4 2020+9.0%+10.1%+0.9%
Q2 2020+2.6%+1.0%+39.8%
Q4 2019+8.8%+18.8%+50.1%
Q2 2019-6.3%-4.3%+3.9%
Q4 2018-1.6%+2.7%+7.3%
Q2 2018-0.8%+2.2%+3.1%
Q4 2017-1.0%-1.3%+1.6%
Q2 2017+0.0%+4.4%+18.5%
Q4 2016-1.9%-1.6%-6.8%
Q2 2016+5.5%+3.8%-8.6%
Q4 2015-6.4%
Q3 2015+15.2%
Q2 2015+16.4%
Q1 2015-10.0%
Q4 2014-11.7%
Q3 2014+0.3%
Q4 2013+5.2%
Q2 2013+0.2%
Q4 2012-7.6%
Q2 2012-1.6%
Q4 2011-0.8%
Q2 2011-1.8%
Q1 2011+1.4%
Q2 2010+1.4%
Q4 2010+1.5%
Q4 2008-7.6%
Q4 2009-7.6%
Q4 2007-7.6%

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